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Technology Stocks : Corel Corp.

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To: Michael Burry who wrote (2376)9/22/1997 8:57:00 AM
From: Mr. Bean   of 9798
 
Very though provoking: "the value of a brand name relates to the price premium (over its generic competitors) a firm can charge."

It would seem that if WordPerfect were indeed a "Brand Name", maybe charging more than Office would yield higher margins. Economics teaches us the "Theory of Elasticity". Could in fact Corel, charge the premium, make more, sell less and increase profits. What would be the price and volume to maximize the bottom line? I think Cowplands obsession to "kick Microslop in the nuts" is in itself a very risking venture, that might not of come from well thought analysis of the market and the P&L statement.

I think if the strategy were properly focused, the stock would have a push from the bottom up. I think being in the spotlight yielded a quick rush of self-gratitude for Cowpland. Now, "Where's the Beef"?

Mr. Bean
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